When a damage award or settlement has both components, the taxpayer must allocate the proceeds and legal fees
Or take Martha Stewart, whose legal fees
were huge, eclipsing many times over the amount at stake in her sale of Imclone stock.
So a small builder, as in the reported case, who wants to claim pounds 5,000 from a dissatisfied customer will not be tempted to run up legal fees
which exceed pounds 10,000 since he will have to pay the excess himself, win or lose.
But Northern Ireland Secretary Paul Murphy has signalled that the legal fees
will be kept under control.
In addition to its legal action against Noonan, Rite Aid is seeking to recoup the legal fees
and other payments made to former chairman and chief executive officer Martin Grass and former executive vice president for pharmacy services Eric Sorkin.
Otherwise, all the assets of LOMI, valued at about $7 million, would be gone entirely by 2006, mostly in legal fees
Only the recipient has a source of income against which the legal fees
would relate, and such a source of income is a necessary prerequisite to the availability of any deduction.
Three West Coast newspapers have been awarded legal fees
by courts that ruled public agencies violated open-record laws by withholding information.
The legal fees
sought by Dunlap and Kersh are related to their defense in the SEC and shareholder actions.
Oftentimes, legal fees
are arbitrarily based on whatever your company is willing to pay.
67-125,(3) the Internal Revenue Service held that legal fees
for advice on the tax significance of a potential reorganization must be capitalized.